Reconstructing Keynesian Argument Research Paper

Reconstructing Keynesian Argument - Research Paper ExampleKeynes deviates from what the immaculate economists majorly focus upon, for the causality that he had been surrounded by Classical and Neo-Classical thinkers throughout his life, yet his ideas have a strong reliance to the Classical Thought and form an inspiration from this indoctrinate of economical thought (Tarshis). Keynes strongly believes that the Classical Economic Theory focused on a specific, exceptional, rather than a general condition of economic theory, to wit the strong emphasis on prices and wages as a determinant of the overall employment level of a country. He demonstrated this with respect to the gigantic Depression and concluded that the Classical focus was too narrow to apply in general. The Classical economists formulated the concepts which made us believe that we can perplex the economy according to set preferences and likes, but in reality, it is difficult to so influentially affect the various econ omic forces which alter the real conditions. Hence, according to Keynes, the Classical Economic Theory is not sufficient to explain the general economic conditions. This gave rise to The General Theory of Employment, Interest, and Money, which focuses on general activity, unlike the Classical case. grammatical construction upon the concepts of employment, interest, and money, Keynes was not just an economist who provided core theoretical concepts, rather he believed in the formulation of sound economic policy through the application of those concepts (Johnson). Keynes theory, therefore, was not just focused on one particular direction of economic activity, but actually covered everything from the basics (prices, supply, demand, wages, employment, saving, investment, capital etc.) to actually applying those concepts practically, as economic policies.